Adopted in 2020, the EU Taxonomy Regulation aims to narrow investments towards sustainable activities that can contribute to reaching the EU Green Deal’s goals, and also to provide transparency for both companies and investors.

The draft delegated acts of the Taxonomy is on the four remaining environmental objectives.

This new delegated act will set the technical screening criteria to assess and evaluate which economic activities qualify as making a substantial contribution to the following environmental objective set by the European Union :

• Sustainable use & protection of water and marine resources
• Transition to a circular economy
• Pollution prevention & control
• Protection & restoration of biodiversity

Additionally, a new timeline for regulatory disclosures has been suggested by the European Commission. The dates are as follow:

Non financial undertakings :

• 2022 : eligibility on first 2 objectives
• 2023 : alignment on first 2 objectives
• 2024 : eligibility on the 6 objectives
• 2025 : alignment on the 6 objectives

Financial undertakings :

• 2022 : eligibility on first 2 objectives
• 2024 : eligibility on the 6 objectives + alignment on first 2 objectives
• 2026 : alignment on the 6 objectives

Consultation is open until May 3^rd 2023 to provide feedback and comments to the EU here : https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13237-Sustainable-investment-EU-environmental-taxonomy_en

The final version of the act is expected to be available in June 2023.

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